California Attorney General Rob Bonta says a $1.2 million settlement has been reached with a company accused of advertising and selling “sham health insurance” in the state over the last several years.
According to the Attorney General’s Office, Sedera, Inc. and Sedera Medical Cost Sharing Community, sold their plans to more than 2,000 Californians. The now-settled complaint alleged that Sedera sold health insurance plans below market rate because it failed to comply with state law.
“They did not offer Californians the essential health benefits they were entitled to,” Bonta said. “We welcome businesses in our state, but we will not allow them to prey on our people.”
Customers were allegedly led to believe that Sedera plans were “practically equivalent to ACA health insurance or service plans” and were not for profit.
Investigations from the state also found that Sedera plans did not offer preventative care — which is required in California state law.
As part of the $1.3 million settlement, the companies must pay $800,000 in consumer restitution and $560,000 in civil penalties. The company has also been prohibited from selling or offering services in California, and they must terminate their California customers list.
Bonta encouraged Californians to “do your research” before selecting a health insurance plan, and consider applying for “affordable, reliable coverage through Covered California.”
The full complaint can be read here.
